System enhancements have often been prioritized over capital improvements of the MTA's infrastructure. The sensible and ambitious turnaround plan should be funded by motorists and increased labor productivity.

In this testimony, CBC Research Associate Jamison Dague presents warns the potential impact of an economic downturn could be as high as $1.5 billion, or as high as 3.9 percent of MTA's 2018 budget, and suggests ways the MTA can prepare for a future recession now without adding to the agency's long-term costs.

The announcement of an agreement for funding the MTA’s 2015-2019 capital plan is an important step in maintaining and enhancing the region’s most vital transportation assets. However, additional steps must be taken.

Debating how to apportion funding for the remaining $9.8 billion gap between “the City” and “the State” is counterproductive. Funding for mass transit should be defined as coming from three sources: fares, tax subsidies, and motor vehicle cross-subsidies.

The Mayor's Ten-Year Capital Strategy totals $83.8 billion- a $30 billion increase from the prior plan. CBC has two main concerns about the Strategy: there is insufficient information available to judge the investments, and the investments will add to the City’s high debt burden.

The CBC Board believes strongly that a well-financed and well-functioning mass transit system is a vital element in the regional economy, and a failure to support and enhance that system can be economically fatal.

CBC proposes a “25-50-25” formula for funding the MTA’s transit services. That is, 20-25 percent of transit expenses should be paid for by auto-user cross subsidies, 45-50 percent paid by riders, and 25-30 percent paid through state and local tax subsidies.

Testimony of CBC President Carol Kellermann to the New York State Senate Finance Committee regarding the critical challenges that will face the MTA in the coming years, including balancing the MTA's operating budget, financing new capital investments, and planning and implementing capital projects.

The testimony offers guidelines for the application of public-private partnerships (PPPs or P3s), suggests areas in which PPPs can be used in New York, and warns against and explains potential pitfalls in the application of PPPs.